Outlook

The corporation remains committed to achieving its seven Corporate Goals. Actual results are monitored quarterly by the Board of Directors and corrective action is taken when necessary to ensure that expected outcomes are realized.

Under The Crown Corporations Public Review and Accountability Act, Manitoba Public Insurance is required to submit Basic Autopac rates to the Public Utilities Board (PUB) for approval. The corporation generally files its rate application in June of each year for the fiscal year beginning the following March.

Basic Autopac Rates

On November 26, 2007, the PUB released its ruling on Manitoba Public Insurance’s rate application for the 2008/09 fiscal year. Effective March 1, 2008, overall Basic insurance rates will remain unchanged, although rates will be reduced by 0.1 per cent for owners of private passenger vehicles and 1.2 per cent for commercial vehicles. Motorcycles and public vehicles will experience an increase of 9.2 per cent and 1.2 per cent respectively. The main components and coverages of the Basic insurance plan will remain unchanged from the previous year.

Premium Rebate

The PUB has ordered a rebate estimated to be $62.7 million, which will be paid to Basic insurance policyholders during the first quarter of the 2008/09 fiscal year.

Net Income

Current projections indicate that the corporation is expected to realize a net loss of approximately $10.0 million during the 2008/09 fiscal year.

Business Process Review

Manitoba Public Insurance prides itself on understanding the needs and expectations of its customers. By engaging in a continuous dialogue with Manitobans, the corporation is able to establish strategies that meet their priorities and provide them with better value.

In 2006/07 the corporation began a process to renew the corporate infrastructure with our customers’ interests at heart. The goal of the Business Process Review (BPR) was to integrate driver licensing functions into the corporation and utilize technological and process improvements to enhance customer service, and operating effi ciency, and to make Manitoba’s roadways safer for everyone.

In 2007, government recognized that there are a number of Manitobans who are non-drivers and who require credible government issued identification. By utilizing existing technology as well as expertise and delivery systems already in place to deliver driver’s licences, the corporation developed a provincial identity card that it will introduce, on behalf of the Manitoba government, in 2008.

The corporation also recognizes that, with so many Manitobans living so close to the border, spontaneous travel into the United States has become common. However, recent restrictions imposed by U.S. authorities to tighten up border security after June 2009 could limit the ability of many Manitoba families to make these trips.

At the request of the Manitoba government, the corporation will initiate a pilot project in 2008 to produce Enhanced Identification Cards – a photo card with superior security features that will meet U.S. border crossing requirements. Because security requirements for these cards was not determined by federal governments until late spring, the corporation does not expect to be able to introduce these cards until the late fall of 2008. With the expected popularity of this identification alternative, the corporation will be challenged to process all requests before the U.S. imposed June 2009 deadline.

One year later, the corporation will combine the improved identity features in a new Enhanced Driver’s Licence that meets U.S. border crossing requirements. This document will be produced as Manitoba Public Insurance introduces a new one-piece driver’s licence for all drivers. This will be combined with a more convenient, streamlined renewal process for Autopac renewals.

Research shows that most Manitobans consider the annual renewal process to be little more than a payment process with four out of five making no changes to coverage. These changes will mean that, with the exception of the renewal process every five years, Manitobans will determine when they need and want to do business with the corporation.

In an effort to reduce risk on Manitoba roadways, in 2009 Manitoba Public Insurance will also introduce changes to the merit discount surcharge program, which will provide drivers with a direct link between their driving habits and history and how much they pay for auto insurance.

The Driver Safety Rating is aimed at bringing greater consistency, simplicity and equity to Manitoba’s system of rewarding good drivers and penalizing those whose behaviour brings more risk into the driver and vehicle insurance pool. Another important aim of this initiative is to demonstrate to customers the linkage between individual driving behaviour and the amount that they pay for auto insurance.

Throughout 2008/09 the corporation will map out the principles and policies that will provide the foundation for the program. In the year ahead, the corporation will consult with customers and stakeholders to refi ne program details and ensure the underlying principles are consistent with the needs and values of Manitobans. The supporting technology will be developed as consultation is underway.

These changes are only possible because driver licensing, vehicle registration and insurance systems were brought together. Integration has enabled the corporation to achieve greater efficiencies while making customer service improvements.

Auto Theft

The corporation’s auto theft strategy continues to evolve over time to meet emerging issues and address challenges of full participation. Experience gained in 2007/08 illustrates that a new group of approximately 48,000 vehicles is rapidly becoming at risk of theft. For example, in 2006, Cadillac Escalades built between 2000 and 2004 had a theft risk of 1 in 82. One year later, the risk for these vehicles was 1 in 8. Similarly, a Chevy Trailblazer built between 2000 and 2004 had a 1 in 141 chance of being stolen in 2006. One year later, the risk of theft for these vehicles was 1 in 18.

The corporation anticipates that, at the current pace, these vehicles could have the same theft experiences as the original Most-at-Risk group by 2009. Collectively, this group has a risk of theft of greater than 1 in 100.

About half this group have become targets favoured by auto thieves in the last year, and owners have not yet been warned that their vehicles are a high theft risk. The other half currently qualify for free immobilizers on a voluntary basis.

Immobilizing these vehicles will move the corporation closer to the goal of reducing theft in Winnipeg by 80 per cent from 2004/05 levels. It would bring the overall theft frequency in Winnipeg to less than one per cent.

The government has decided that this group of high risk vehicles will be added to the regulation requiring an immobilizer be installed before registration can be renewed after October 1, 2008.

The corporation will protect these vehicles using the same process currently in place. In order to minimize customer inconvenience, the corporation will take a proactive approach to notify vehicle owners of the need to immobilize before their renewal date. They will be provided with a no-cost immobilizer, a free installation and five-year interest-free financing for any additional charges.

All affected registered vehicle owners will receive their first notice four months prior to their renewal. It will be informative and helpful and will be followed up with written and telephone communications until an appointment is booked.

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